Edexcel Economics 5. The UK Economy - Income, Growth, Policy

Description

Term

The two flows from firms to households in the circular flow, in alphabetical order

The degree of responsiveness of demand to a change in the cost of money, i.e. the interest rate

Monetary and fiscal policies designed to reduce economic activity such as by reducing aggregate demand

That body, influence in the form of voting power at which is much affected by a country's economic growth

The period during which economic growth is below the trend rate, with there being low inflation and higher unemployment

A market-based supply-side policy in which rules, regulations, and barriers are reduced in order to increase innovation and investment, successful where markets are competitive and not under monopolies

That type of fiscal policy that will result in a reduction of the inflation rate ceteris paribus

That which economic growth benefits by increasing revenue from income, corporation, and value added tax, while decreasing the cost of welfare payments, allowing increasing public sector investment

A suggested way of viewing the environmental stock of a country, which like any other capital must be utilised effectively and sustainably

The relationship between the price of an asset and the interest rate on the asset

Description

Term

That which might lead to inflationary pressure as it represents a net outflow of products and a new inflow of money

The labour, land, and capital that businesses need in order to provide goods and services

That type of policy, the primary concern of which is in regards to the government budget deficit or surplus and the taxation and spending that created it

Policies aimed at increasing supply while reducing government intervention in the economy

The proportion of additional income not spent domestically

A strategy for achieving rapid economic growth through the promotion of export activity, particularly where the domestic market is insufficient alone for such growth

Where an increase or decrease in aggregate demand has a cumulative effect on the economy through the successive spending rounds it causes

That position on the government's budget which slows growth as withdrawals exceed injections

One of the three pairs between withdrawal and injection, relating to government

That one of the three principal measures from the circular flow of income, expenditure, and output model which best describes how resources are being used in an economy